Handling IRS Debt: 7 Tips for Negotiation & Settlement | Axiom Tax Resolution Group

Do you have IRS debt that you need to settle soon? If you’re being troubled by responsibilities, you don’t have to worry. You can take certain actions if you want to finally catch up to your current IRS debt.

To start, here are some surefire ways you can do to resolve IRS debt and get rid of your tax problems.

1. Compromise

The first thing to do is to negotiate with the IRS. Getting in touch with the IRS is one of the best ways to avoid penalties and have a more flexible payment plan.

One thing you have to remember as you do this is that the IRS doesn’t expect you to pay what you owe at once. If you can’t pay the money at once, the IRS will propose a repayment scheme that works for both parties.

2. Lump Sum Payment

Making a lump-sum payment for your tax debt is the best way to reduce your monthly payments. However, this may not be possible if you don’t have the money to pay upfront.

If you can’t do this, you can negotiate a tax payment plan with the IRS.

3. Expired Statute of Limitations

One of the best ways to settle tax debt is to be aware of the statute of limitations. The statute of limitations refers to when the IRS can take legal action against you for your unpaid taxes.

The statute of limitations is up to 10 years. If you’re unaware of this, it’s best to find out the statute of limitations for the taxes you owe.

4. Penalty Abatement

If you still owe money to the IRS but can’t catch up on your payments, you can request a penalty abatement. This is a request to get rid of the interest you’re paying due to your unpaid taxes.

To avoid penalties, you should also try to pay your back taxes as soon as possible.

5. Innocent Spouse Relief

If you have a spouse that owes back taxes, you can take advantage of this tax debt relief solution. To be eligible for this, you must prove that your tax debt is due to your spouse’s fault.

For instance, you can’t claim that you’re responsible for the tax debt if your spouse is hiding assets or not reporting regular income.

6. File for Bankruptcy

If you’re struggling with IRS tax debt and don’t see a way out, you can file for bankruptcy. However, you must remember that bankruptcy doesn’t erase your tax debt.

You need to list all your debts in your bankruptcy petition to get out of debt. You must state your assets and liabilities as well as your income.

If you don’t report this information, you could get in trouble. If you’re struggling with IRS debt, you should file for bankruptcy as soon as possible.

7. IRS Fresh Start

If you’re struggling to pay your tax debts and you’re looking for an alternative solution, you can always ask for an IRS fresh start.

This program can allow you to settle your tax debt without forcing you to file for bankruptcy. This program is only available if you owe $50,000 or less in back taxes.

Final Thoughts

If you have unpaid IRS debts and have a hard time dealing with them, you can consider reaching out to the IRS. There are many ways you can settle your account to avoid encountering problems in the future.

For the best results, you may also work with us at Axiom Tax Resolution Group. We offer tax resolution services to help people find a permanent solution for tax problems with the IRS. Give us a call today for more information.